Strong performance delivering strategic objectives

Continuing improvements to the rental growth outlook and further reductions in the cost of finance will help maintain our strategy of paying a progressive dividend to our shareholders which is fully covered by earnings.

Business model   Investment case

Strategic objectives

General progressive shareholder returns through a combination of earnings and valuation growth.

Activity in 2020
  • Adjusted EPRA earnings per share 5.8 pence increased by 5.5% (2019: 5.5 pence).
  • Dividend per share increased by 5.4% to 5.9 pence.
  • Total NAV return of 10.9p.
  • Average cost of debt 3.5%.
  • £4.3 million p.a. cost saving from cancelling and re-couponing fixed rate swaps.
Looking forward
  •  Strong investment pipeline both in the UK and Ireland.
  •  Strategy of paying a progressive dividend that is covered by earnings in each financial year.
  • Internalisation of management structure, in 2021, with cost savings estimated at £4.0 million p.a., equivalent to 0.3 pence per share.

Content sourced from 2020 Annual Report.

Fund the development of and acquire modern, purpose-built healthcare premises that provide secure long term income streams with the potential for rental growth and capital enhancement.

Activity in 2020
  • Selectively acquired 23 standing assets in the year investing £58.8 million, and a further 4 developments with a net development cost of £34.2 million.
  • Portfolio grown to 513 properties including 18 assets in Ireland.
  • Total property return in the year of 7.4%.
Looking forward
  • Sector fundamentals of long leases and government-backed income continue to drive demand in the sector.
  • Strong pipeline of opportunities across the UK and Ireland, totalling £138 million, including £59 million under offer.
  • Nexus developments acquired in 2021 with a further development pipeline of £80 million.

Content sourced from 2020 Annual Report.

Work to improve the rental potential and longevity of underlying income streams and secure capital growth from assets within the portfolio, whilst controlling operating costs.
 

Activity in 2020
  • 24 asset management projects completed, on site or about to commence in the year, investing £8.1 million and generating £0.3 million of additional income.
  • EPRA cost ratio reduced to 11.9% reflecting the full year benefit of the merger with MedicX.
  • £2.0 million, or 1.6% additional income form rent reviews and asset management projects.
Looking forward
  • Strong pipeline of over 80 potential projects being progressed.
  • Continued discussions with occupiers to discuss requirements and identify new opportunities.
  • EPRA Cost ratio should fall in the future following internalisation of management structure.

Content sourced from 2020 Annual Report.

Fund activities through an appropriate mix of shareholder equity and debt, from a diverse range of sources with varied maturities.

Activity in 2020
  • The Company completed an equity placing in July 2020 raising £136.9 million net of expenses.
  • £150 million loan facility renewed with Barclays and Lloyds.
Looking forward
  • New loan facilities and equity raise provide significant firepower to secure new investment opportunities.
  • 100% of the Group’s drawn debt is fixed or hedged protecting underlying earnings from potential interest rate rises that may result from recent and future economic and potential change.

Content sourced from 2020 Annual Report.